A manufacturer of the cycle has a fixed cost of $500. The producer experiences a variable cost of $30 per cycle. Suppose the manufacturer of the cycle can sell its products for $80 each.
a) Find the total cost function at a production level of x cycles.
b) Find the revenue function R associated with output level x.
c) Determine the manufacturer’s profit function P.
d) How many cycles should be produced in order to have a break-even?
e) Suppose that the manufacturer produces 15 cycles. What corresponding profit should the manufacturer get?